Business Travel Growth
According to the American Express Global Business Travel Forecast 2014, country-specific trends and events are expected to contribute to a slight uptick in business travel in certain regions. That includes Brazil, because it is hosting global sporting events and Germany because of its relative economic strength.
In addition, supply side economics, including more low-cost carrier options, weaker demand for business class travel due to more stringent corporate policies and lack of new hotel construction in some places and oversupply in others, will have a greater impact on pricing changes. Overall, North American business travelers can expect mixed price changes across travel categories next year.
- With some exceptions, North American airfares are expected to decline due to heightened competition from low-cost carriers, challenging unemployment levels and tighter corporate travel policies. However, airline consolidation may offset these declines.
- Hotel rates in North America are projected to be up overall, but this will vary by location. Key business destinations such as New York and Toronto should grow, but secondary locations will have more competitive pricing.
- There may be moderate price increases in car rental base rates as rental companies pass on price increases for new cars. Corporations are also exploring car-sharing programs in certain markets.
Source: American Express press release.